Florida Workers' Comp Guide

PEO vs. Traditional Workers' Comp in Florida

Should you use a PEO or carry your own workers' comp policy? The answer depends on your trade, payroll size, and risk profile. Here's the honest comparison.

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PEO vs. Traditional Workers' Comp — Full Comparison

Factor	PEO Workers' Comp	Traditional WC Policy
Who is the employer of record?	PEO (co-employment)	Your business
Who carries the WC policy?	PEO — master policy	You — your own policy
Rate basis	PEO's pooled experience	Your class code + EMR
Best for low-risk industries (8810, 8742)	✓ Often lower rates	✓ Competitive rates
Best for high-risk trades (5551, 5069, 5059)	✗ Often excluded or surcharged	✓ FWCJUA available
Certificate of insurance control	PEO issues COI on your behalf	You control your own COI
Claims management	PEO manages claims	You manage with your agent
Ability to build your own EMR	No — tied to PEO's EMR	Yes — your own loss history
Flexibility to change carriers	Limited — tied to PEO contract	Annual renewal, shop freely
Same-day COI available?	Depends on PEO	Yes — through Bright Coast
Minimum payroll requirements	Often $50K–$100K+	None for FWCJUA
Year-end audit	PEO handles	Required (or PAYG to avoid)

When to Use a PEO vs. Traditional WC

🏢 Use a PEO When…

✓Your workforce is primarily office/clerical (class code 8810, $0.105/$100)
✓You want to bundle HR, payroll, and benefits administration
✓You have fewer than 10 employees and want access to group benefit rates
✓Your industry is low-to-moderate risk and you're not in construction
✓You don't want to manage a year-end audit

🔨 Use Traditional WC When…

✓You're in a high-risk trade (roofing 5551, ironwork 5069, masonry 5022)
✓You've been declined by a PEO or standard carrier
✓You want to build your own experience modification rate (EMR)
✓You need direct control over your certificate of insurance
✓You want pay-as-you-go billing tied to your actual payroll

Why Florida Contractors Usually Choose Traditional WC

Florida has some of the highest workers' comp rates in the country for construction trades. The FWCJUA 2026 rate for roofing (class code 5551) is $6.752 per $100 of payroll. For ornamental ironwork (5069), it's $15.353 per $100. Most PEOs either exclude these codes entirely or add a significant surcharge on top of the already-high base rate.

With a traditional WC policy, Florida contractors pay exactly the FWCJUA rate — no PEO markup. And if you have a good claims history, your Experience Modification Rate (EMR) can drop below 1.0, giving you a premium credit that a PEO arrangement can't replicate (because your experience is pooled with all other PEO clients).

For Florida contractors in high-risk trades, the math almost always favors a traditional WC policy — especially once you factor in the ability to build your own EMR over time.

Frequently Asked Questions

Not Sure Which Option Is Right for You?

Bright Coast Insurance specializes in Florida workers' comp for contractors and high-risk businesses. We'll help you compare options and get the best rate.

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